‘Shameful Exploitation’: Walgreens sued for price gouging baby formula, now must donate to NYers

Attorney General Letitia James announced a resolution involving Walgreens on Wednesday after an investigation into the company’s pricing of baby formula during the 2022 shortage. 

The settlement includes a donation of 9,564 cans of baby formula, valued at $200,000 wholesale, and a $50,000 penalty to address allegations of price gouging.

During a nationwide shortage exacerbated by supply-chain issues and a major recall by formula manufacturer Abbott Laboratories, Walgreens was found to have significantly increased the prices of at least 20 infant formula products. The OAG’s investigation was initiated after consumer complaints about the high costs of essential baby formula.

“Baby formula is the main source of nutrients and absolutely essential for thousands of our most vulnerable residents, our infants,” James said. “During the formula shortage, families were panicked and struggling about how to feed their babies. For Walgreens to take advantage of this crisis and jack up formula prices is not only illegal but downright shameful.”